Six Sigma, Projects, and Models

Six Sigma today is used by many corporations today, and around the world. Identification and selection of Six Sigma projects is often discussed. The origins of Six Sigma comes from the Greek alphabet used to denote standard deviation, a statistical measurement of variation, the exception to expected outcomes. (Thomsett, 2005)

Six Sigma concept can being with a process called Business Process Management (BPM) which helps design, communicate, and improve systems. The use of flowcharts and Gantt charts, and MS Project charts help to communicate the intent of project managers.

Real Option Analysis is one method that can improve the value of the project by considering the various kinds of risks. Some companies use Six Sigma to reduce risks in projects. (RK Padhy, Dec 2011. Vol. 29, Iss. 8; pg. 1091) The major issues addressed are quality control in an organization.      People have argued that many communities can benefit from city leaders that consider using Six Sigma’s operating model to help with improving the way local governments are operated. “With lean Six Sigma implantation, streets of Irving, Texas are repaired in less than 4 weeks compared to 16 weeks. When the employees of the city government have teams consisting of Six Sigma members the implementation of lean Six Sigma has yielded positive results in all areas for the city. (Brandt, Jul 2011. Vol. 43, Iss. 7; pg. 50, 3 pgs) This city used “lean Six Sigma to attain results such as a drop in the crime rate, a vibrant local economy, opening of a new convention center, and the creation of 3,000 new jobs.” That shows us that there can be positive results by seeing cities implementing Six Sigma methodology.

            In this economy may companies are turning to “Six Sigma models because it provide various kinds of sustainability to companies in terms of quality enhancement, zero defect level, market share enhancement, optimal production level, and financial returns.” (Abdullah, May/Jun 2011)             The reason companies use Six Sigma is that it is a quality management, total quality management, zero defect level, lean management, continuous improvement and Six Sigma has evolved from programs at Lockheed, IBM, and Motorola in the 1980’s when they were called only Zero Defects, and High Reliability programs. They have been initiated by large corporations including: 3M, Merrill Lynch, Bank of America, Amazon.com, DHL, SGL group, dell, Ford Motors, DuPont, McGraw Hill, and many others (Abdullah, May/Jun 2011) because of the difficulties that small companies have in implementing many of the Six Sigma concepts. The is Six Sigma for Quality Management, Sustainability, which involves the implementation of proven quality principles, techniques,  people, capital resources, natural resources, environment, and institution.  3M adopted Six Sigma to attain environmental stability during the course of implementation of Six Sigma in a company utilizes the technique of data collection, and data analysis. This will help with the core objective of Six Sigma which is to improve on competition, zero defect level detections to help improve financial success. . (Abdullah, May/Jun 2011)

            In the work environment, relationships are important to structure, communications, and morale of any company. Establishing a continual improvement system is essential to the

continued survival of any corporation.

The four loops in Figure 1 represent data analysis supporting:

* Lean methods for sustaining the current process (left loop).

* Process monitoring and corrective action to return deviation to nominal requirements (bottom loop).

* Design for breakthrough improvement based upon key system relationships (right loop).

* Conceptual research and profound knowledge for organizational growth (top loop).

(Duffy, Milwaukee: May 2011.)

I found that the overlapping structure of a company is well illustrated below to show how all the elements of an organization are interdependent on each, like well-oiled gears in a factory.

            Through continuous improvement in an organization as a system, there will be long-term success due to the interaction of processes across the complex systems in a large corporation. This methodology of implementation of Six Sigma will create effective improvement in this ever changing global economy. (Duffy, Milwaukee: May 2011.)

            We have seen many examples of the success of the implantation of Six Sigma, but we really don’t understand what it is. According to the teaching of Dr. Walter Shewer

•         Process Control;

•         Plan Do Check Act;

•         Common and Special Causes;

•         Improvement can be done project by project

•         Statistical tools

•         Hawthorne Plant Experiences

Other Definitions include:

•         Degree of variation;

•         Level of performance in terms of defects;

•         Statistical measurement of process capability;

•         Benchmark for comparison;

•         Process improvement methodology;

•         It is a Goal;

•         Strategy for change;

•         A commitment to customers to achieve an acceptable level of performance

(Six Sigma, NA)

According to many professionals Six Sigma methods can be applied to various areas including:

Service, Design, Purchase, Production, IT, M&S, HRM, Quality Depart, Administration, Management. There are Six Sigma Initiatives that can integrate the below efforts.

(Six Sigma, NA)

In Six Sigma there different methods of change management for an organization,

·         Activity Centered programs – The pursuit of activities that seem good, but don’t contribute to the bottom line.

·         Result Oriented programs – There focus is on achieving specific, measurable, operational improvements in a few months.

·         Examples of specific measurable goals:

·         Increase yield, reduce delivery time, increase inventory turns, improved customer satisfaction, reduce product development time.

Many people don’t understand the fact that Six Sigma is a problem-solving methodology for improving business and organizational performance.  There are phases to Six Sigma for performance, improvement, deployment, and organization, according to (Gygi, 2006) A company that decides to implement it must realize that it is intense and rigorous; it entails a thorough inspection of the way everything is done in a corporation. Many times work in a department is performed incorrectly. Six Sigma brings a quality-improvement methodology to a company. Through a great deal of effort, discipline, and hard work Six Sigma will bring improved performance, happier customers, lower costs, and success. (Gygi, 2006)

            Management system orientation can produce management results with a clear value proposition and (ROI), top commitment, accountability, and customer focus. (Gygi, 2006)

A great deal of statistical analysis is used in Six Sigma to identify the areas of a company that need improvement.  There is the application of zero defects in Six Sigma which recognizes the size, or complexity of a company, and how they are irrelevant for successful implementation.

Six Sigma applies a scale to characterize quality control in company’s final products, services, and transactions, especially when safety or human life is involved. (Gygi, 2006)

There is used a Sigma Scale as illustrated below:

Sigma              Percent Defective                   Defects per Million

1                      69%                                         691,462

2                      31%                                         308,538

3                      6.7%                                        66,807

4                      0.62%                                      6,210

5                      0.023%                                    233

6                      0.00034%                                3.4

7                      0.0000019%                            0.019

There are essentials of Six Sigma besides the statistical aspects. The project methodology of (DMAIC) is Define-Measure-Analyze-Improve-Control which is applied to improvement projects that are managed to financial targets. There are various domains of activity: Thinking, processing, designing. Six Sigma requires energize thinking, an open mind by the corporate management, a thirst for truth, and betterment. (Gygi, 2006) Many corporations have set ways of doing things. There will be initial reluctance by many corporate management structures, resistance to implement changes that can’t alter the way older corporations fundamentally run. It will often meet with resistance by the corporate structure, if the team of executives doesn’t properly develop a deployment program. (Gygi, 2006)

There must be the following people and departments as core team members: Six Sigma deployment leader, business unit Six Sigma leaders, key executive representatives, functional representative, human resources, finance, information technology, training, and communications.

To solve problems the Six Sigma way requires varying degrees of skill in applied statistics. That is where Master Black, Black, Green, Yellow, and White belts are utilized. Each type of Belt has varying degrees in expertise in the implementation of the Six Sigma process. The S.S. Black Belt would be considered the master of statistical problem-solving. Lesser degrees of skill are defined including Blue Belt, Brown Belt, and White Belt. This is derived from the various belts in Karate or Tae Kwon Do which are martial arts disciplines.

There is an understanding and enacting the breakdown strategy with the various teams who have varying levels of Six Sigma expertise. Going from the objective, phase, output areas of a project include, product returns, customer complaints, accounts receivables, cycle time, ineffective of defective services, yield and subsequent rework, capacity constraints, and excessive inventory levels.  All of these areas can be broken down into areas of concern in any organization, which requires structure, and a method of approach.

The approach for dealing with issues needs statistical data, data mining will give insight into analyzing how each sector, and function in a corporate structure functions. (Brandt, Jul 2011. Vol. 43, Iss. 7; pg. 50, 3 pgs) There is a process management summary that will take the data accumulated and implements in a process review. A process control plan will be implemented by the Six Sigma process to create a complete picture of all possible inputs, outputs, and activities for a single process. (Gygi, 2006) pg 230.

The various reports tools used in Six Sigma projects that are available are generic reporting tools, integrated tools, and balanced scorecards.

There is a timeframe for training people in Six Sigma, with a series of lectures, video case studies, experiments, workshops, exercise, defined projects,  presentations, and homework for all those learning Six Sigma. Over a span of 5 weeks or more of training, managers can learn the detailed aspects of implementing Six Sigma. There various topics aforementioned in the paper that goes over team roles, presentation skills, project management skills, group techniques, quality, pitfalls of quality improvement project, project strategies, and Minitab 16 introduction; which is one of many programs used for charting in project management. (Six Sigma, NA)

I shall conclude with the fact that communications is of paramount importance with the implementation of Six Sigma. If there is no or poor communications between all the employees in the target company, then Six Sigma will be very difficult to implement. Because there is so much literature to implement the Six Sigma Tools and Techniques, high level managers who implement the various phases from:

The Define phase, the Analyze phase, The Improve Phase, The Control Phase are all key elements to successful lean manufacturing, significant cost saving, and better productivity for a company that properly implements the methodology that Six Sigma provides to a corporation in today’s global marketplace. (Pyzdek, 2003)

References

Abdullah, A. (May/Jun 2011). Six Sigma For Sustainability In Multinational Organizations. Journal of Business Case Studies, Vol. 7, Iss. 3; pg. 7, 9 pgs.

Brandt, D. ( Jul 2011. Vol. 43, Iss. 7; pg. 50, 3 pgs). Lean Six Sigma and the city. Industrial Engineer, Norcross.

Duffy, G. L. (Milwaukee: May 2011.). The Impact of Relationships. ASQ Six Sigma Forum Magazine, Vol. 10, Iss. 3; pg. 28, 3 pgs.

Gygi, C. ,. (2006). Six Sigma for Dummies. Indianapolis: Wiley Publishing, Inc.

Heerkens, G. (2002). Project Management. New York, NY: McGraw-Hill.

McCarty T., B. M. (2004). The Six Sigma Black Belt Handbook. Motrola University: McGraw-Hill.

Six Sigma. (NA). Retrieved from AuthorSTREAM: http://www.authorstream.com/Presentation/blackiceberg-130113-six-sigma-download-3-entertainment-ppt-powerpoint/

Pande, P. S. (2000). The Six Sigma Way, How GE, Motorola and Other Top Companies are Honing Their Performance. New York: McGraw Hill.

Portny, S. E. (2007). Project Management for Dummies. Hoboken: Wiley Publishing.

Pyzdek, T. (2003). The Six Sigma Handbook, The Complete Guide 2nd Edition. San Francisco: McGraw-Hill.

RK Padhy, S. S. ( Dec 2011. Vol. 29, Iss. 8; pg. 1091). A Real Option based Six Sigma project evaluation and selection model. . International Journal of Project Management. , Kidlington.

Smith, K. A. (2004). Teamwork and project management. New York: McGraw-Hill.

Thompson, L. A. (2009, March). Leadership Model for Professionals. Strategic Finance, pp. 90(9), 25.

Thomsett, M. C. (2005). Getting Started in Six Sigma, Comprehensive Coverage. New Jersey: Wiley.